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With New Festino Chips, Agere Looking To Jolt Industry.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| June 02, 2003 | Detar, James | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: JAMES DETAR

Some say it will be years before the network equipment market recovers. But Agere Systems Inc. isn't waiting around.

Agere in the last two weeks rolled out nine network chips that could go a long way toward a turnaround for the Lucent spinoff. Then it plans to unveil a design for network switch circuit boards Monday at Supercomm in Atlanta, the network gear field's biggest trade show.

The design, called Festino, works with Agere chips and those of two chipmaking partners, Exar Corp. and Agilent Technologies Inc. Toronto-based contract manufacturer Celestica Inc. is the fourth co-developer of Festino. It's ready to make any products that network gear makers design with Festino.

Agere aims to license Festino to switch makers such as Cisco Systems Inc. and Nortel Networks Corp. They can use Festino to design cards for their switches.

"We see a huge need for this, given the serious market constraints our customers are under," said Mark Granahan, an Agere vice president.

Why is Agere in such a product frenzy when the network gear market is still sleeping?

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